Forecasting an Income Statement Abercrombie & Fitch reports the following income

Question

Forecasting an Income Statement Abercrombie & Fitch reports the following income statements.

Forecast Abercrombie & Fitch's fiscal 2012 income statement assuming the following income statement relations. All percentages, other than sales growth and provision for income taxes, are based on percent of net sales.

Instructions: Round answers to the nearest whole number. Do not use negative signs with your answers. Remember to use rounded forecasted net sales with subsequent calculations.

Income Statement, For
Fiscal Years Ended ($ thousands) Jan. 29, 2011 Jan. 30, 2010 Jan. 31, 2009 Net sales $ 3,468,777 $ 2,928,626 $ 3,484,058 Cost of goods sold 1,256,596 1,045,028 1,152,963 Gross profit 2,212,181 1,883,598 2,331,095 Stores and distribution expense 1,589,501 1,425,950 1,436,363 Marketing, general and administrative expense 400,804 353,269 405,248 Other operating income, net (10,056) (13,533) (8,778) Operating income 231,932 117,912 498,262 Interest expense (income), net 3,362 (1,598) (11,382) Income from continuing operations before taxes 228,570 119,510 509,644 Tax expense from continuing operations 78,287 40,557 201,475 Net income from continuing operations 150,283 78,953 308,169 Loss from discontinued operations, net of tax -- (78,699) (35,914) Net income $ 150,283 $ 254 $ 272,255

Explanation / Answer

2011 2012 Net sales $ 34,68,777 $ 38,15,655 cost of goods sold $ 12,56,596 $ 13,73,636 gross profit $ 22,12,181 $ 24,42,019 Stores and distribution expense $ 15,89,501 $ 17,55,201 Marketing, general and administrative expense $ 4,00,804 $ 4,57,879 Other operating income, net $ 10,056 $ 10,056 Operating income $   2,31,932 $   2,18,883 Interest expense (income), net $ 3,362 $ 3,362 Income from continuing operations before taxes $   2,28,570 $   2,15,521 Tax expense from continuing operations $ 78,287 $ 73,277 Net income from continuing operations $   1,50,283 $   1,42,244 Net loss from discontinued operations (net of tax) $                -   $                -   Net Income $   1,50,283 $   1,42,244

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